No major system rollout, especially one that fundamentally alters a country’s tax infrastructure, is without its transitional pain points. While the long-term benefits of TaRMS and FDMS are clear, the initial phases have presented significant practical challenges for taxpayers and tax agents in Zimbabwe.
Here is an analysis of the initial and ongoing transitional issues currently being faced as witnessed by Taxpayers:
🚧 Initial Challenges & Transitional Issues of TaRMS/FDMS
The challenges largely fall into three categories: Technical/System Instability, Process and Data Migration, and User Adoption/Capacity.
1. Technical & System Instability Issues
These issues create friction and anxiety, especially around critical deadlines.
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System Slowdown and Glitches: Like any new, complex platform, the TaRMS Self-Service Portal (SSP) has experienced periods of slowdown and minor glitches, particularly during peak filing times. This causes significant frustration and can lead to late filing, exposing the taxpayer to automated penalties.
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Verification Code Failures: Users often report difficulty receiving the mandatory verification codes (via SMS or email) needed to complete initial registration or account login. This is a crucial security step that, when failing, completely locks the taxpayer out of the system.
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Intermittent Integration Errors: While the TaRMS-FDMS integration is the main goal, the real-time link between fiscal devices and the central server can be unstable, leading to delayed or un-posted sales data. This creates uncertainty for the business regarding whether ZIMRA has the correct record of their sales.
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ASYCUDA/Bill of Entry Lag: The integration between TaRMS and the Customs system (ASYCUDA) for imported goods (Bill of Entries) was not completed initially. This forced taxpayers to manually capture input tax claims on imported goods, undermining the efficiency promised by the automated system and increasing the likelihood of manual error.
2. Data Migration & Process Complexities
Moving data and established processes from the old SAP system to TaRMS has been a major hurdle.
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Master Data Clean-up: The old system often had inaccurate or incomplete taxpayer records (e.g., old addresses, incorrect contact details, or multiple/duplicate taxpayer numbers). These errors are transferred to TaRMS, leading to issues with automatic TIN allocation and creating a massive, time-consuming effort for taxpayers to manually correct their master data via ZIMRA help desks.
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Old vs. New System Duality: For a significant period, taxpayers had to navigate two parallel systems—TaRMS for new registrations and payments, and the old e-services/SAP for submitting old returns or requesting prior-period Tax Clearances. This complexity created confusion regarding where to file and where to pay, often resulting in unposted payments that were not correctly linked to a return in the new TaRMS ledger.
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Payment Allocation Complexity: The new “Single Account” payment system requires the immediate filing of the corresponding return for the payment to be correctly allocated. Taxpayers accustomed to the old system’s leniency on payment-return sequencing have faced penalties because their payment sat unallocated until the return was filed.
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Existing Payment Plans: Existing installment plans agreed upon in the old system did not automatically migrate to TaRMS, requiring taxpayers to re-apply for new payment plans, which caused administrative bottlenecks.
3. User Adoption and Financial Burden
The human element and financial cost are often underestimated in such rollouts.
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Digital Divide and Training: Many Small to Medium Enterprises (SMEs) and informal traders lack the necessary digital literacy, hardware, or stable internet access required to use the SSP and manage the fiscal devices effectively. This gap necessitates heavy reliance on tax agents or frequent visits to ZIMRA kiosks, increasing their operational costs.
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High Cost of Fiscal Devices: The mandatory acquisition, installation, and ongoing maintenance of certified fiscal devices (or the API development for Virtual Fiscal Devices) represents a significant capital cost for businesses, particularly for smaller firms in a challenging economic environment.
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Loss of Human Interface (Initial Phase): The initial focus on automation and self-service meant a reduction in the available ZIMRA personnel to deal with complex, bespoke transitional problems, leading to a bottleneck in resolving complicated ledger and data migration issues.
In summary, while TaRMS and FDMS are poised to deliver a modern, efficient, and fraud-resistant tax environment, the transition requires patience, significant investment in IT and training by the taxpayer, and continued dedication from ZIMRA to stabilise the systems and resolve data migration anomalies.
